The Maldives recorded an overall fiscal deficit of MVR 110.6 million by 4 June 2026, as government expenditure grew faster than revenue during the first five months of the year.
Cumulative revenue and grants reached MVR 19.09 billion, representing an increase of about 10 per cent from the MVR 17.34 billion collected during the corresponding period of 2025.
Government expenditure rose more sharply, increasing by nearly 18 per cent from MVR 16.33 billion to MVR 19.20 billion. This reversed the MVR 1.01 billion surplus recorded at the same point last year.
Tax revenue increased by 12 per cent to MVR 14.84 billion and continued to account for most government income. Goods and Services Tax generated MVR 8.55 billion, including MVR 6.02 billion from Tourism Goods and Services Tax.
Business and property taxes rose to MVR 2.77 billion, compared with MVR 2.11 billion a year earlier. Revenue from airport service charges and departure tax also increased, reaching MVR 939.7 million.
However, non-tax revenue declined by nearly 4 per cent to MVR 3.85 billion. Fees and charges fell from MVR 2.03 billion to MVR 1.65 billion, while income from interest, profits and dividends also decreased.
The increase in expenditure was driven mainly by recurrent costs, which rose by nearly 17 per cent to MVR 16.87 billion. Administrative and operational expenses reached MVR 10.19 billion, while spending on salaries, wages and pensions rose to MVR 6.62 billion.
Grants, contributions and subsidies increased to MVR 5.69 billion. Subsidy expenditure alone reached MVR 2.30 billion, nearly 69 per cent higher than the amount recorded during the same period last year.
Capital expenditure rose by about 25 per cent to MVR 2.33 billion. Spending on land and buildings increased to MVR 761.7 million, while expenditure on other infrastructure assets reached MVR 560.9 million.
Despite the wider increase in capital spending, expenditure under the Public Sector Investment Programme declined by 4 per cent to MVR 2.31 billion. Transport infrastructure remained the largest PSIP category at MVR 818.6 million, although this was substantially lower than the MVR 1.56 billion recorded a year earlier.
Spending increased across several other areas, including energy and utilities, healthcare infrastructure, education, water and sanitation, and housing and community amenities.
Loan repayments reached MVR 8.71 billion, up from MVR 3.13 billion during the corresponding period of 2025. The increase means repayments were nearly three times higher year on year and represented one of the largest financial outflows recorded outside recurrent and capital expenditure.
The government retained a primary surplus of MVR 2.18 billion after excluding financing and interest costs. However, this was lower than the MVR 3.38 billion primary surplus recorded a year earlier.
Outstanding government securities stood at MVR 97.15 billion as of 1 June. Domestic instruments accounted for MVR 95.61 billion, including MVR 43.93 billion in rufiyaa treasury bills and MVR 28.64 billion in rufiyaa treasury bonds.
The Finance Ministry noted that expenditure figures reflect transactions that have been recorded but may not yet have been settled in cash. Revenue and expenditure totals may also change as reconciliation work continues.
